Drew Receives an Inheritance That Pays Him $50,000 Every Three

question 14

Multiple Choice

Drew receives an inheritance that pays him $50,000 every three months for the next two years.Which of the following is closest to the present value (PV) of this inheritance if the interest rate is 8.5% (EAR) ?

• A)$354,223
• B)$364,309
• C)$365,322
• D)$400,000

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Definitions:

Beta Rhythm Patterns

Brain wave patterns that represent a state of alertness, active thinking, and concentration.

Alpha Rhythm

Brain wave patterns detected in the electrical activity of the brain, often associated with a state of wakeful relaxation.

Gamma Waves

A pattern of brain waves in the human brain with a frequency between 25 and 100 Hz, associated with perception and consciousness.

Delta Waves

Slow brain waves, typically associated with the deepest stages of sleep and relaxation.